DALLAS, March 30, 2020 /PRNewswire/ -- The Howard Hughes
Corporation® (NYSE: HHC) announced today its recent closing on two
loans totaling over $490 million. A
$356.8 million construction loan was
secured at Ward Village® for its sixth residential mixed-use
development, Kō'ula, reflecting continued strong demand to live in
the acclaimed 60-acre master planned community transforming
Oahu. In addition, a $137 million, 5-year term loan was secured for
9950 Woodloch Forest Drive, one of two premier Class AAA towers in
The Woodlands® comprising the newly rebranded The Woodlands Towers
at The Waterway.
At Ward
Village, The $356.8
million construction loan for Kō'ula, which has a three-year
initial term with a one-year extension, carries an interest rate of
London Interbank Offered Rate (LIBOR) + 3.0%. Total project costs
of $485.1 million, exclusive of land,
will be covered by the loan, existing buyer deposits and
approximately $28.2 million of cash
equity. The loan is led by US Bank with seven other participating
lenders.
"With nearly 75% of homes already pre-sold at Kō'ula, we
continue to see strong momentum in the local
market," said Doug Johnstone, President, Hawai'i at
The Howard Hughes Corporation. "Today, approximately 90% of
our homes (over 2,421 residential units) are sold across the six
towers at Ward Village that are
either delivered or under construction, producing total
contracted sales revenue of approximately $2.7 billion. These robust sales numbers reflect
the enthusiastic response to the dynamic community taking shape in
the heart of urban Honolulu."
"Ward Village continues its
transformation into one of the country's most sought-after urban
communities," said Paul H. Layne,
Chief Executive Officer, The Howard Hughes Corporation. "Obtaining
financing for Kō'ula on the heels of its exceptional pace of sales
demonstrates Ward Village's
ongoing momentum and unique position in the market. In January,
Ward Village launched public sales
for its latest tower, Victoria
Place, which quickly became the fastest-selling market tower
in the history of Ward
Village."
In The Woodlands, the
5-year term loan secured for 9950 Woodloch Forest Drive carries an
interest-only rate of London Interbank Offered Rate (LIBOR) +1.95%
and will provide $63.5 million of
initial funding, which will repay the property's allocation of the
bridge loan used for the acquisitions of The Woodlands Towers at
The Waterway, and provide "good news" money for leasing for total
funding up to $137 million. The
company is currently documenting the terms for an extension of the
remaining $281 million of the bridge
loan, pursuant to which HHC would receive a six-month extension at
LIBOR plus 235 basis points, and have the option for an additional
six-month extension at LIBOR plus 290 basis points, extending the
final maturity to June 2021.
This loan follows the recent announcement that a
133,948-square-foot lease was signed with Western Midstream
Partners, LP (NYSE: WES) for the top five floors of the building,
which is now 35% leased.
The Woodlands Towers at The Waterway is designed to meet the
demands of the commercial office market for relocation and
expansion, featuring a state-of-the-art, two-level fitness center
complete with a basketball and volleyball court, approximately
33,000-square-foot rooftop terrace, building conference facilities,
lobby café and a tenant concierge program along with additional
amenities. Both Class AAA towers—the 595,000-square-foot, 31-story
tower at 9950 Woodloch Forest Drive and the 808,000-square-foot,
30-story tower at 1201 Lake Robbins Drive—are LEED Silver
certified, and offer frontage along Interstate 45 with convenient
access to the Grand Parkway, Hardy Toll Road and the George Bush
Intercontinental Airport.
"The Woodlands has been one of
the most acclaimed master planned communities in the country over
its 45-year history, currently ranked as the #1 "Best Cities to
Live" in Texas and #4 in the
nation," said Jim Carman, President
of the Houston Region for The Howard Hughes Corporation. "The
Woodlands Towers at The Waterway exemplifies are commitment to
providing our community and its businesses with unmatched amenities
and buildings integrated into exceptional natural surroundings with
focus on health, wellness and sustainability." HHC announced its
own plans to relocate their corporate headquarters to the building
later this year.
About Ward
Village®
Developed by The Howard Hughes Corporation®, Ward
Village is a 60-acre master-planned community in the heart of
Honolulu, located between downtown
and Waikīkī, along O'ahu's picturesque south shore. Honoring the
distinct history of its land, Ward
Village is at the forefront of sustainable community
development - integrating striking architecture, local culture, and
public open space. At full build-out, the community will include
approximately one million square feet of unique retail and
thousands of homes, in what Architectural Digest named
"Best-Planned Community in the United
States."
As a result of strong demand for new housing in urban
Honolulu, Ward Village is quickly approaching sellout of
its first four mixed-use residential towers — Waiea®, Anaha®,
Ae'o®, and Ke Kilohana® — transforming the popular shopping and
dining district into a vibrant neighborhood that offers ocean views
and open space, including its newest outdoor gathering place,
Victoria Ward Park. New residential
buildings in development or under construction include A'ali'i,
Kō'ula, and Victoria Place.
Since launching public sales in January
2020, Victoria Place has
become the fastest-selling market tower in the history of
Ward Village.
Ward Village is the first-ever
LEED‐ND Platinum-certified master-planned community in the country,
and the only in Hawai'i. At the forefront of sustainable
development, it features public amenities at a scale not offered by
any other urban community in the state. For more information,
visit www.wardvillage.com.
About The Woodlands®
The Woodlands is a 28,000-acre
master planned community located 27 miles north of downtown
Houston. Throughout its 46-year
history, The Woodlands has led the
way among master planned communities that practice environmental
preservation. It is home to 118,000 people, and over 68,000 people
work in the community. The
Woodlands is one of the most successful master planned
communities in Texas and the
nation. The Woodlands was named
"Trailblazer of the Year" in 2018 by the Greater Houston Builders
Association. The community was also named "Humanitarian of the
Year" in 2019, 2017, 2016 and 2007 and "Master Planned Community of
the Year" in 2015, 2010 and 2007 by the Greater Houston Builders
Association. For more information,
visit www.thewoodlands.com. For additional details, find
us
on Facebook, Twitter, Instagram and LinkedIn.
About The Howard Hughes Corporation®
The Howard Hughes Corporation owns, manages and develops
commercial, residential and mixed-use real estate throughout the
U.S. Its award-winning assets include the country's preeminent
portfolio of master planned cities and communities, as well as
operating properties and development opportunities including: the
Seaport District in New York;
Columbia, Maryland; The
Woodlands®, The Woodlands Hills®, and Bridgeland® in the
Greater Houston, Texas area;
Summerlin®, Las Vegas; and Ward
Village® in Honolulu,
Hawaiʻi. The Howard Hughes Corporation's portfolio is strategically
positioned to meet and accelerate development based on market
demand, resulting in one of the strongest real estate platforms in
the country. Dedicated to innovative placemaking, the company is
recognized for its ongoing commitment to design excellence and to
the cultural life of its communities. The Howard Hughes Corporation
is traded on the New York Stock Exchange as HHC. For additional
information visit www.howardhughes.com.
Contacts
Cristina Carlson,
646-822-6910
VP, Corporate Communications and Public Relations
cristina.carlson@howardhughes.com
The Howard Hughes Corporation Investor Relations
David O'Reilly, 214-741-7744
Chief Financial Officer
david.o'reilly@howardhughes.com
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SOURCE The Howard Hughes Corporation